PRAN †the Largest Agro Food Processor in Bangladesh Essay

IntroductionAgricultural merchandise friendship restrain (AMCL) was set up at archetypical in 1981 and then 1985 for farming and trade of agricultural harvestings for topical anesthetic and export market. Subsequently a modern fruit impacting plant with bottling and earning facilities was added in 1993 to produce fruit juice, squash, sherbet, jam, jelly etc. the company processing unit started commerci aloney end fruit in July 1993 and launched its intersection points in the market under the brand name PRAN. PRAN stands for Programme for Rural Advancement Nationally. The brand Pran has constituted itself in both category of fodder and beverage industry and wad boost a product topical anaestheticize from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products. Pran Group was born keeping in view the integrated mission of the group. Today Pran is the largest processors of fruits & vegetables in Bangladesh. Pran is the pioneer in Bangladesh to be involved in contract farming.They encourage contract farmers and admirer them grow quality crops with increase yields and to obtain fair monetary values. They procure unsanded temporal directly from the farmers and processes through the machineries at their several factories into hygienically packed food and drinks products. The Group comprises of 10 companies. The repoint offices ar located at Dhaka with doing facilities around the country. Their management is modern adapted to the environment & culture and Prans largest asset is their contestnt team of hands-on-mangers & dedicated employees. Pran is listed with the Dhaka and Chitttgong stock exchanges in 1996. Pran market-gardening marketing company limited has controlled the nine individual Business Units on their umbrella.Agro Industrial ParkBangladeshs first-ever agro-industrial zone, Pran Agro Industrial Park, was inaugurated in Natore. The park is comprised of automatic rice mill, spice, peanut, honey, tomato, pickle, jam and jelly processing units, fruit pulping units, pulses mill, puff rice mill, cattle feed mill, plastic molding and milk collection units to produce wide range of products, which is using forexport.Plant in IndiaNow Pran is going for FDI ( alien Direct Investment) in India by building its first foreign factory in India, taking advantage of the countrys recent decision to get up its ban on Bangladeshi investment. The plant will be built in the north-eastern Indian aro do of Tripura. It will initially produce jelly and drinks and is expected to come into operation by 2009 with an annual dollar garishness of around Tk100 crore. It will supply the markets of northeast India -Assam, Nagaland, Tripura, Meghalaya, Manipur, Mizoram and Arunachal Pradesh -kn proclaim as Seven Sisters, state a senior semiofficial of Pran Exports Ltd. The plant will initially produce jelly and drinks, which have already won popularity in those areas, said Paramuddin Hossain, senior manager of Export of Pran Group.Related and Supporting IndustriesPran Food Limited produce contrary types of food products which require umteen different related and supporting products in their different stages of production and distribution.I.Mango and Other Fruits attentionPrans mango juice is their most selling item and most of their earnings are take in by selling mango juice. So they need a large meat of mango as a raw material in mango juice production. They besides need mango in producing Jam, Pickles and Mango Bar. Besides Mango they also need many other fruits like Orange, Pineapple, Apple, Litchi, Lemon and many other fruits to produce Juice, Jam, Fruit Bar and Pickles. At present they supply mango and other fruits from their own garden as well as import from other countries like India and Bhutan. barely the importing derive is to a greater extent than the amount of supply from their own garden.II.Sugar IndustrySugar is an inevitable raw material for production process i n Pran FoodLimited. They need loot in juice production to candy production. They use our home countries sugar because they do not import sugar for spunky tariff rate. So sugar industry is a related and supporting industry for Pran Food Limited. in that respect are many local sugar industries that depend on Pran.III.Dairy FirmPran has the countrys largest milk producing centre. Prans own dairy farm firm supplies milk to produce Ghee, Milk candy, Mango Milk, Chocolate Milk, and in many other production process. If supply from their own dairy firm can not satisfy the need of raw materials in future other dairy firms can give them the supply.IV.Wheat IndustryPran needs a bulk amount of wheat to produce snacks, like Crackers & Chips, Bakery Items, Biscuit, Chanachur, Dal etc. They import wheat from other countries for their production process.V.Packaging IndustryTo distribute all products Pran needs quality and colorful package. At present they are importing all packaging materials excluded the glass feeding bottle from China and Korea. And they use local glass bottle to distribute juice and pickles.Organizational Structure of Pran The Pran agriculture marketing company limited constructed their organizational bodily structure in standard way which could efficient for their production and job.The structure is given belowMarketing system of Pran To achieve its marketing objectives Pran uses the customer centered orientation program to gain large bulk of customers. first gearof all they set Segmentation Targeting Positioning (STP) for their products.I.Market SegmentationPran particle their market to divide the market into trenchant groups of buyers who have distinct needs, characteristics, or behavior and who require separate products or marketing mixes. For utilization they segment their mango juice to think about the people of different age and who have different examine. identical Pran Mango Juice-Classic for generalized group, Pran Mango Juice-Premi um for the group who want thick mango juice, Pran Joy Juice for the four-year-old generation and Pran Junior Juice for the children.II.Target MarketPran target the middle class people who wants verified taste of foods. As consumer percentage is high in this group they think that this target market is highly moneymaking for them. So, they dont go for high priced product rather than they try to serve low price but competitive quality of product. That is why their main object is to serve quality product at a lower price and they do a lot of promotional activities for being the best in the competitive market.III.Market PositioningPran positioning their products in their customers mind by offering special features and benefits. To occupy a clear, distinctive, and desirable flummox relative to competing products in the minds of their target market Pran tries to position their each and every product. For example Pran tries to position the Mango Bar as a taste of the happiness of their c hildhood, in the mind of every consumer.IV.Marketing Mix of PranPran has a set of controllable tactical marketing tools product, price, place and promotion, which they blend to produce the reply wanted by their target market.a)ProductProducts act as customer solution for their subscribe. Pran has an extensive line of product which can easily satisfy the need for any food demand of the consumers. Consumers are getting all sorts of food products they need to consume from Pran.b)PriceBangladesh has a huge shortage of fruit, vegetable, raw materials. So Pran make up this shortfall by importing from the neighboring and different countries like India, Bhutan, and China etc. But, for that, Pran needs a relaxed tariff structure to keep their products competitive. So, Pran follows competitive pricing strategy to manage in the market. But they also take care of the limitation of their customer. So they always try to keep the price low to compete in the market and to make their products pri ce affordable for their consumers.c)PlacePran has an extensive sales profit throughout the country to reach their product to everyone. Their products are available even to the remote part of the country. Company appointed sales take out to cover every part of the country.d)PromotionPran communicates with their consumers by various means of promotion. To state a good public relation they take intensive sales promotion. To promote Prans product to their customers, they are conducting some promotional activities.These includeAdvertisement in print media such as word paper, magazineAdvertisement in visual media with opinion leadersFree campaignSponsoring in different cultural occasionsV.Countrywide Sales and Distribution NetworkPran maintains the following distribution networkPran sales force comprises 137 Executives. Number of Sales Representatives is 1510. They are performing the responsibility of Selling to retailers all over Bangladesh through Distributors. At this moment compan y appointed total Distributors are 720.Mode of exaltationationPran use fare in the following activitiesI.To Import Raw MaterialsTo import the raw materials Pran use Freight on Board (FOB) and C&F both transportation system. On FOB the supplying company takes the responsibility to import raw materials up to Chittagong port and on C&F the supplying company imports the raw materials up to the factory. But Pran use the C&F system more than FOB system.II.To Export Processed FoodsPran Food Limited uses the shipping system to export processed food to many other countries. To avoid the high transportation cost, they use shipping system instead of air. III.To Distribute In The Local MarketTo avoid high freight Pran use their own distribution channel to distribute their products inside Bangladesh. They also take help of the local transportation agencies to distribute their products on payment. The names of some local transportation agencies that they use more frequently are given belowHaji M ostafa TransportAnanda ParibahanShamim TransportMulti Star Transport Ltd.N. Mohammad TransportPackagingPackaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging is very substantial part for the marketers because by looking at the packaging of product, consumers take the decision of buying a crabbed product. That is why Pran does colorful packaging which attracts customers a lot. Pran gives a lot of efforts in packaging. They are in a good position in doingpackaging compare to other companies in Bangladesh. Pran export their product in the international market, so comparing with the international market their process of packaging is not in a good position at all. Pran is doing their best to compete with the international standard of packaging. For doing packaging they use foreign technologies to compete with the world market. They import package mostly from Thailand. Then they prefer China. They import diffe rent packing materials like- atomic number 13 Foil, Crown Cork, Flexible Packing material, Glass Bottle, Glass Jars, HDPE, Lug Cap (30, 53 & 63mm), PET, spring Labels, Shrink caps, Tin Can, U-Straw.Pran is doing packaging because of following reasonsi.Self-ServiceProducts should be packaging in such a process which is gimmick for the consumers. Pran package their products in such a way that it is very convenience for the consumers to take products from one place to another. Pran do standardizing and grading their products according to different weight of their product.ii.Consumer AffluencePran always try to have combat more profit from customers. So Pran emphasize on appearance, dependability, and prestige of better package for having consumer affluence.iii.Company and Brand find outPackages contribute to instant recognition of the company and brand. Pran packages their product in such a way that its become very easy for the customers to recognize their product.When Pran packag e their product, they emphasize a lot in hardly a(prenominal) factors like-I.Physical ProtectionPhysical means the physical product. They emphasize whether products are secure after packaging or not.II.Barrier ProtectionThere are some problems that create product unhygienic, dust is one of them. To hygienic the product, Pran does their packaging very carefully. They concentrate on whether the packaging is protecting the products from different barrier or not. Pran use pertly types of technology for protecting these types of problem.III.Information TransmissionIn packaging, Pran gives a lot of information about how to use products and what chemicals are their in the product. By doing these they do the work of information transmission which help a lot to the customers.IV.SecurityThere is possibility of damaging goods when products are going for shipment. Some time because of some defect in the packaging, products can not reach in there destination. For that reason companies loss the ir profit as well as their goodwill. That is why Pran emphasize a lot on security in packaging to prevent from these problems. behavior of PackagingThe way that Pran packages their products can be shown in the following tables-Local Demand Condition Pran is the Bangladeshs largest selling processed food company. The local demand for Prans product has increased day by day. The marketing officials explained that their current production volume even failed to satisfy the local demand condition in last year.The local demand condition of Prans product can easily determined by their sales volume. Here we examine Prans sales volume for last five years which shows that the local demand condition of their products has increased drastically. In 2004 the sales volume was worth of 50 crore taka which increased to 250 crore taka in 2008. That means the sales amount has increased by 40% in last five years.Foreign Demand Condition Like local demand condition Pran has a vast demand to the foreign m arket. They started to export from 2001 and from then on their foreign demand condition has just increasing and increasing.The foreign demand condition of Pran can be easily drawn by their exporting volume of last 8 years. We can see from the graph that at the beginning the only export worth 12 crore which increased by 16.67% in next year (2002). They had a slow increase in export up to 2005. Till then they had average increase of 17% each year in export. But they had a drastic change in exportfrom 2006 when their exporting volume rises by 55.55% from the previous year. They had exporting volume of 56 crore taka in 2006 and 80 crore in 2007. In last year they export worth long hundred crore which break the all past record of increase in export.Market Access Issues Pran, Bangladeshs largest agro process company produces and export different kinds of food products. Now they have access to many countries and have possible to export many other countries.